_____ INDEXES & ETFs
Liquid - Low Cost - Efficient - Diversified - Flexible
During times of change, look for what is working. ETFs have proven their relevance to institutional portfolios over the past 5 years.
Initially created for institutions in the early ‘90s to trade big blocks quickly, these “Super Shares” have experienced a meteoric rise in popularity over the past five years. They allow Investors and asset managers to target specific sectors or entire countries. The efficient structure of an ETF keeps its fees low and tax efficiency high. They offer full liquidity and full transparency, and Investors do not have to worry about sales loads.
By using ETFs in portfolios, we focus our skills and resources on the area of the portfolio where we can add the greatest “alpha” over traditional managers who focus their time and resources on individual company selection. ETFs shift the focus of asset management onto relevant design and asset allocation. The unprecedented growth of the ETF industry during Wall Street’s turbulent transition into the Information Age demonstrates their relevance to institutional portfolios.
* Sources: Investment Company Institute and Strategic Insight Simfund
|
|
|---|
